There is a new buzzword rocking the financial services industry: RegTech.
According to the easy algorithm of combining a short form of an industry to be disrupted with the suffix “-Tech”, RegTech stands for “Regulation Technology”. To explain it, we have to make a little excursion to last week’s hot topic in the form of FinTech (Financial Technology).
Some FinTechs have become so successful over the recent months that they are challenging some of the world’s oldest major banks and insurances in revenue and market cap. Where no FinTech can compete, however, is on a track record of trust that dates back centuries, as in the case of some banks. When your entire business model is dealing with intangible assets, the trust of your customers and counterparties remains the only true currency you have. Today’s cyber security capability is yesterday’s bank vault.
Unfortunately, there are more than enough recent examples of digital companies, including prominent FinTechs such as Kreditech, being brought down by cyber security events, hacks or compliance failures. In light of seemingly overpowering, anonymous and omnipresent cyber criminals, a young FinTech organisation might despair. At second glance however, the majority of cyber attacks have not been complex. In most cases, the attacks were either through social engineering or exploiting very basic weaknesses or a combination of both.
Every growing organisation will reach a certain point in time where someone in a leadership position wants to set a certain behaviour for the organisation and gathering everyone around the water cooler to tell them becomes impractical, too non-committal or plain illegal. In nearly every organisation I have encountered, the approach has been to open up a word processor, draft a policy, get sign-off and publish it somewhere as a PDF. I have never seen this being particularly effective, and here’s why.
The founding team of Alyne just spent three days attending one of Europe’s largest conferences for the startup community - the Munich Bits and Pretzels conference. More than 3600 founders, investors, press representatives, politicians and entrepreneurs from around the world came together for three days to present, share and discuss relevant topics for people in the startup ecosystem with an amazing finale at the Oktoberfest on Tuesday. We are all still processing the wealth of impressions and information we gathered and wanted to pull together some thoughts here in our blog.
One of the essential steps in starting any business is creating awareness for your brand. You can have the greatest product in the world, but if your target group doesn't know about it, you will never make a sale. For me, marketing is also not at all about this traditional advertising pushing, which many people associate with the topic. It starts much earlier in identifying promising market potential, shaping a product to fit this demand, and then telling people about it in the least annoying way possible.
